by Chris Becker
Stuck sideways is the best way to describe major stock markets as the Fed marches towards higher rates, as the lastest FOMC minutes show. This is firming the US dollar, weakening the major currencies – which is helping the dominant mercantilist States like Germany – but is pushing emerging markets and currencies down with their burgeoning debt loads as commodity prices fall. This week sees the Northern Hemisphere summer begin, month end and perhaps some more confidence filtering through as major economic releases – and surprises – are thin on the ground.
Recapping Asia first where the Shanghai Composite finally put on a solid session to finish the week a little stronger, but still clinging on to very temporary support just above 2800 points. I’m still watching the previous intraweek low for a complete breakdown here with my target the former low at 2600 points:
